For many of us, the end goal of our ambitions is to own our own home. A house in our name can help us be independent, show the outside world that we are responsible adults who know what we want out of life and help us raise our children in a stable environment where they lack nothing. Furthermore, a property bought in 2023 can be an investment in your financial future. Although mortgages are considered life-long commitments, the premises of the real estate market in London can work to your advantage, and a house bought today could double in value in twenty years, making the whole loan worthwhile.
But at the end of the day, you want to find the best deals, and this is where the professional services of a mortgage broker in London can help. He will have access to databases of all local lenders and will be able to compare with you all the available mortgage offers so you can make the best decision for the financial future of your loved ones. But the services of a mortgage advisor don't stop at researching good deals. Their expertise can be crucial for finding mortgage options you didn't know about. But what are these mortgages? We will try to answer this question and more in the following article.
Get a Holiday-Let Mortgage
London is one of the most visited cities in the world, in 2018 alone, attracting just shy of thirty-eight million tourists eager to see the history-filled streets of England's capital. And the growing tourism sector can represent an opportunity for people looking to earn extra income. As a mortgage advisor in London might tell you, Holiday-let mortgages are a type of loan exclusively granted to people intending to acquire accommodation that will be rented out for a minimum of 210 days a year.
A dwelling purchased with the help of a Holiday-let loan arranged through a mortgage broker in London will bring you a higher income than would be the case for a long-term rental property. Furthermore, a property bought in a tourism-focused area will appreciate faster than one purchased in a suburban neighbourhood preferred by long-term renters. And this can be helpful if you want to pay off your mortgage more quickly while retaining a generous profit.
Compared to a Buy-to-Let Mortgage, a Holiday-let mortgage can be beneficial if you want to use the property as your residence for up to twenty-two weeks a year. In addition, the home purchased through a Holiday-let mortgage may come with tax advantages, as some of the maintenance expenses could be deductible at the end of the fiscal year. But there are also disadvantages. Holiday-let mortgages are more difficult to obtain, requiring a higher up-front deposit and an annual rental income that, in most cases, exceeds 145% of the mortgage repayments. Therefore, it's crucial to call a mortgage advisor in London before you start looking for this type of loan.
Are You Interested in a Shared Ownership Mortgage?
You may be going through a financially difficult time, but at the same time, you may be interested in buying the property you are currently renting. In this case, as your mortgage broker in London might tell you, a good solution might be to take advantage of the shared ownership scheme offered by the UK government. What is it? It is a way by which you can purchase a certain percentage of your home through a mortgage, for the rest of it continuing to pay rent as before.
Why would this be beneficial for you? First, you could lower your monthly expenses and get a property in your name at a reduced cost. The upfront deposit you have to pay on a shared ownership loan obtained through a mortgage broker in London is lower, and your monthly repayments may be cheaper than if you remained a tenant. In addition, you will always have the opportunity to buy the remaining shares in your building when your financial situation allows. The disadvantages of such a mortgage are the limited number of lenders offering these loans and the restrictions that may arise if you want to redecorate or sell your dwelling.
Go for an Equity-Release Mortgage
Are you over fifty-five and want to raise some cash for personal expenses? If so, with the help of a mortgage advisor in London, you could look into Equity-release mortgages. What are the advantages? First, you could raise a significant sum to invest in your hobbies. Have you worked hard all your life, and now you want to finally enjoy a holiday with loved ones? Then an Equity-release loan arranged with the help of a mortgage advisor in London could help you.
Equity-release mortgages have seen a rise in popularity in recent years, with over 90,000 such applications being registered in 2022. What is this mortgage? In simple terms, Equity-release loans involve obtaining a lump sum from a lender in exchange for a share in the proceeds received after the owner passes away and the house goes on sale. Such a loan obtained with the help of a mortgage advisor in London can be beneficial if you are primarily interested in getting a large sum of money as quickly as possible. However, it can be disadvantageous for the relatives that inherit your property.
Use Your Financial Flexibility
Calling on the professional services of a mortgage broker in London can allow you to discover economically convenient deals for you and your loved ones. In addition, the offers available through a mortgage advisor in London can be exclusive and potentially turn into a wise financial package in the future. Mortgage brokers usually take their commission directly from lenders, so using their services does not involve financial risks. And their knowledge can be crucial to discovering types of loans you may have yet to learn about.
Are you interested in receiving a passive income? In this case, you might be interested in the requirements for a Holiday-let mortgage. Are you over fifty-five and want to free up some capital for a life-long passion? In this case, you might be interested in an Equity-release loan. Or you may have lived in the same property for decades and would like to buy your dwelling with the help of the Right-to-Buy programme. Whatever your inquiry, a professional mortgage broker should have the answer for you, and regardless of your requirements, the expertise of a specialised mortgage advisor should fulfil your needs.